Everi Holdings has entered into a purchase agreement to acquire certain assets of gaming content provider Video King for a cash consideration of approximately $59m, subject to customary net working capital adjustments.
Commenting on the transaction, Randy Taylor, CEO of Everi, said the acquisition offers the company “another lever for growth” and will help to elevate its current offering.
Video King is a provider of integrated electronic bingo gaming tablets, video gaming content, instant win games, and systems, adding to Everi’s existing land-based and digital casino gaming content and products, financial technology and player loyalty solutions.
The transaction is expected to be completed within the next 60 days, subject to customary closing conditions, will be funded from existing cash on hand and is expected upon closing to be immediately additive to the company’s adjusted EBITDA and free cash flow.
GLC Advisors & Co is acting as Video King’s exclusive financial advisor on the transaction.
Taylor stated: “Over the past several years, we have had great success with executing on acquisitions that grow our product capabilities and the markets we serve. During this time, we have established a track record of successfully scaling up acquisitions that have delivered an attractive return on investment and helped drive strong cash flow.
“We are highly confident that by helping to elevate our current Games, FinTech and Digital solutions with and adjacent to our established customer base, the acquisition of Video King will meet those same criteria and offer Everi another lever for growth.”
Everi grows its existing games segment reach with the Video King acquisition, as the latter is licensed in approximately 60 jurisdictions and generated more than $25m in revenue in 2022.
Close to 20 per cent of Video King’s installed base of portable e-gaming tablets could be able to provide players with traditional bingo games and Class II video poker, slots and instant win games, as well as with a digital wallet and loyalty products from Everi, subject to regulatory requirements.
“Video King provides Everi with an expansive new channel to deploy our growing catalogue of digital igames, as well as enhance the player experience by incorporating our digital wallet and loyalty products while adding a new source to generate recurring revenue,” commented Tim Richards, Everi Executive Vice President, Chief Strategy and Digital Officer.
“With an expanding demographic audience looking to engage in increased social and leisure activities, we see a significant opportunity to collaborate with the Video King team to develop new gaming content and play enhancements to optimise player engagement and drive increased customer traffic.”
Tim Stuart, CEO and Co-Founder of Video King, added: “We are confident that as part of Everi, Video King will be in a very strong position to expand our product offerings to provide our long-time loyal customer base with new enhanced games for our tribal, charitable and military markets.
“The combination of Everi’s games and other digital offerings with our strong electronic bingo base creates a unique opportunity to accelerate future growth.”
